Hercules anticipates a 25 basis point increase in the Prime Rate will
contribute approximately $4.3 million, or $0.04 per share, of NII per
annum, based on the basic weighted share outstanding as of September 30,
2018. As of September 30, 2018, 97.0% of Hercules’ debt investment
portfolio of $1.61 billion, at cost, was primarily priced at PRIME or
LIBOR-based floating interest rates, while 90.0% of the Company’s
outstanding debt obligations have a fixed rate of interest. Given the
expected increase to the Prime Rate will be taking effect late December
2018, the anticipated increase is not expected to have any material
impact to our NII in Q4 2018. The expected benefit from the December
2018 rate increase is expected to materialize beginning with our Q1 2019
operating period.

Based on Hercules’ Consolidated Statement of Assets and Liabilities as
of September 30, 2018, the following table illustrates the approximate
annualized increase in components of net income resulting from
hypothetical base rate changes in interest rates, such as prime rate,
assuming no changes in the Company’s investments and borrowings or (cost
of borrowings).

(in thousands)

Interest

Interest

Net

EPS(2)

Basis Point Change

Income(1)

Expense

Income

25

$

4,303

$

46

$

4,257

$

0.04

50

$

7,921

$

93

$

7,828

$

0.08

75

$

11,720

$

139

$

11,581

$

0.12

100

$

15,518

$

186

$

15,332

$

0.16

200

$

31,188

$

372

$

30,816

$

0.32

300

$

45,681

$

558

$

45,123

$

0.47

(1) Source: Hercules Capital Form 10-Q for Q3 2018

(2) EPS calculated on basic weighted shares outstanding
of 95,460. Estimates are subject to change due to impact from
active participation in the Company's equity ATM program and any
future equity offerings.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $8.2 billion to over
440 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol “HTGC.” In addition, Hercules has five
outstanding bond issuances of 6.25% Notes due 2024 (NYSE: HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due 2022, 5.25% Notes due 2025
(NYSE: HCXZ) and 6.25% Notes due 2033 (NYSE: HCXY).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules’ most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.